U8 Retirement Plans

Which of the following describes the Systematic Stage of Investing?

• High risk investments that most people never explore

• Save 3 - 6 months of net pay for emergencies.

• Regular, planned investments in retirement plans.

• Conservative, high risk investments.

What is diversification?

• Spread risk by purchasing different types of investments from different industries.

• A collection of low-risk investments that yield a high return.

• Investments used for retirement at age 59 1/2.

• Put-and-take accounts used to emergencies and reoccurring monthly expenses.

Which of the following is an individual retirement account with TAX-FREE earnings?

• 401(k)

• 403(b)

• Traditional IRA

• Roth IRA

Which of the following is an individual retirement account with TAXABLE earnings? 

• 401(k)
• 403(b)
• Traditional IRA
• Roth IRA

Which of the following is a retirement plan for a NON-PROFIT business?

• 401K

• Traditional IRA

• 403(b)

• Roth IRA

Which of the following is a group retirement plan for profit-seeking businesses?

• 401(k)

• Traditional IRA

• 403(b)

• Roth IRA

Which of the following investments are purchased in the "Systematic Investing (3rd) Stage?"

• Mutual funds

• Stocks

• Futures

• Bonds

Which of the following are "investment criteria" you should consider BEFORE you choose an investment? Choose ALL that apply.

• Safety

• Liquidity

• Purchase price

• Tax benefits

• Anticipated dividend or interest

Which of the following are important factors to consider BEFORE you begin investing your excess savings? Choose ALL that apply.

• Financial goals

• Risk tolerance

• Your age

• Lifestyle

• Your income, marriage, children

At what age are you allowed to withdraw funds from retirement accounts WITHOUT a penalty?

• < 59

• >= 59 1/2

• < 60

• > age 55